Business Combination

3 Months Ended

Mar. 31, 2019

Note 19 – Business Combination

On January 30, 2019, we purchased the tenant’s interest and other operating assets of an established four-screen cinema in Devonport, Tasmania, Australia, for $1.4 million (AU$1.95 million). We commenced trading from this new cinema site on January 30, 2019.

The total purchase price was allocated to the identifiable assets acquired based on our preliminary estimates of their fair values on the acquisition date. There were no liabilities assumed. As of March 31, 2019, the Company is still finalizing its allocation and this may result in potential adjustments within the one-year measurement period from acquisition date. The determination of the fair values of the acquired assets (and the related determination of their estimated lives) requires significant judgment.

Our preliminary purchase price allocation is as follows:


	Preliminary Purchase Price
	Allocation
(Dollars in thousands)	US Dollars(1)		AU dollars
Tangible Assets
Operating property:
Fixtures and equipment	$	153	$	213
Intangible Assets
Goodwill		1,248		1,734
Total assets acquired		1,401		1,947

Net assets acquired	$	1,401	$	1,947

(1)

The balances were translated into U.S. Dollars based on the applicable exchange rate as of the date of acquisition, January 30, 2019.